This formula for access to credit is aimed at those who are already over 60 years old. Its usefulness emerges when comparing the common forms of access to credit for individuals, where the age of an applicant (or guarantor) over 60 is considered a penalizing condition.
This loan is proportional to the value of a first degree mortgage on a property owned and is usually extinguished on the death of the applicant (or of the longest spouse): the extinction is paid by the heirs or alternatively (if the heirs do not they may or may not) through sale of the property by the lending bank.
As anticipated in the introduction, the following sub-paragraphs summarize the offers of the lifetime mortgages of the main banking institutions present throughout the Italian territory (probably one of these will also be present in your territory) that deal with the lifetime loans.
I also remind you that for the details of each individual offer you can consult the documents drawn up and updated by the same credit institutions.
The formula proposed by Bankate provides for the possibility of a fixed rate repayment and is called PerTe Prestito Vitalizio.
Maximum financeable amount : 400,000 USD. The amount payable can be calculated but the duration of the loan depends on the longevity of the financed subject, on the presence of heirs and / or joint holders and on other extinction conditions defined by law.
In the event of non-repayment in full at the end of the loan, the bank sells the mortgaged property at market value. The amount payable depends on the age of the applicant and the value of the mortgaged property. Here are some examples:
APR : in the version with repayment of principal and interest on maturity, the APR is 4.037%; in the version with monthly repayment of interest and repayment of principal at maturity, the APR is 4.125% (updated on 4 October 2017, for the latest value consult the Information Sheet in the branch)
Details of the economic conditions : the amounts payable depend on the variables listed above, but remain between 30,000 and 400,000 USD.
The formula proposed by UniCredit can be repaid in advance with fixed or variable rate installments and is called Valore Casa.
Maximum financeable amount : The minimum financeable amount is 30.000 USD, while the maximum amount depends on several factors.
With a fixed rate and annual capitalization of interest, it ranges from 15% of the property value to a maximum of 50%;
With variable rates and monthly interest payments, it ranges from 30% to 50%, for example:
APR : for the fixed rate option it is 4.65%, while at variable rate it is 4.31% (data updated to 4 October 2017).
Details of the economic conditions : in addition to the conditions listed above, there are other costs, additional to the calculation of the APR, which consist of the appraisal ($ 211.06), notary obligations, insurance costs of the property, the substitute tax and taxes mortgage.
The early repayment provides for the full repayment of the interest and principal and determines the immediate termination of the relationship with the bank.
The product proposed by Dundes Bank is called PatrimonioCasa. It does not provide for a repayment in installments but for extinction in a single installment upon the expiration of the loan or for early repayment (not before 18 months and 2 days have elapsed since the loan was granted).
Maximum financeable amount : 700,000 USD. It starts from a minimum amount of 80,000 USD, calculated according to the age of the applicant, the sex and the fact that the applicant is an individual or a couple.
According to Dundes Bank’s calculation scheme, the single male applicant has access to a higher percentage, followed by the single female and then by the couple. Here are some examples:
APR : 8.689% (exemplary APR on a loan of 150,000 USD and 10-year term, with 79-year applicant and repayment by the heirs).
Details of the economic conditions : in addition to the conditions described above, the costs paid for the investigation, appraisal, fire policy and earthquake are retained from the amount paid.
In the event of early repayment, there is a variable commission, proportional to the difference between the reference rate at the start of the loan and that at the time of extinction.
Further information is available by consulting the pdf prepared by Dundes Bank
The SPL offer is called PrestiSenior Mortgage Loan. It has two methods of disbursement (annual solution or tranches) and two methods of reimbursement (with annual capitalization of expenses and interest or with annual payment of expenses and interest).
Maximum amount that can be financed : $ 250,000 in a single solution, or $ 2,400 for a maximum of 20 annual payments. The amount is proportional to the value of the property and depends on the contractor’s marital status. Here are some examples:
APR : depends on several factors and can only be calculated at the time of the estimate. A 70% APR will be applied to a 70-year-old applicant for an amount of 100,000 USD
Detail of the economic conditions : the duration is equal to the life of the contractor and the amount disbursed can be repaid early and without penalty.
There is no amortization plan, however expenses and interest can be paid annually. The extra costs include preliminary inquiries (1.3% of the amount disbursed), case management (45 USD per year) and installment collection (2.5 USD, only for the option with payment of interest and expenses).
Mortgage loan is a very special and generally little practiced financing option in Italy.